DQW2-1 - I would say that my current organization uses the...

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Why would you use the percentage of sales method for calculating doubtful accounts as opposed to the percentage of receivables method? What method do you think your current or former employer organization may use to calculate doubtful accounts? Please include an explanation to support your response. A reason why you would use the percentage of sales method for calculating doubtful account as opposed to the percentage of receivables method is that you can actually see how much of a percentage of sales that you received from the customers that has bought your product.
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Unformatted text preview: I would say that my current organization uses the percentage of sales method. The reason for this is that we have tons of accounts with people that they can use online and get discounts and they pay us for those services rendered to them. When we don’t receive the money to cover their account we suspend their account so all they can use is cash. They can only use cash at a World Wide Service Station, which is just a regular service station that the FedEx employees work out of....
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